Reliance Power and Bangladesh Power Development Board (BPDB) on Saturday signed a Memorandum of Understanding (MoU) to develop 3,000 MW of Liquefied Natural Gas (LNG) based combined cycle power project in Bangladesh in phases, along with a Floating Storage and Re-gasification Unit (FSRU) based LNG terminal to supply re-gasified LNG to the power project. The MoU was signed during the visit of Prime Minister of India Narendra Modi to Dhaka.

The land for the power project shall be provided by BPDB at appropriate locations. The FSRU terminal shall be set up at Maheshkhali Island in Cox's Bazar district of Bangladesh. The Project can be set up quickly and can power the country’s rising demand for electricity and will provide clean and green power. The project is in line with the Master Plan of 2010 for Bangladesh, under which BPDB envisages to develop a 3,000 MW LNG based power project so as to meet the growing power demand and supplement the domestic gas reserves in the country. The project is the largest foreign investment in Bangladesh with a potential investment of about USD 3 billion in phases.

Reliance Power is implementing a 2,400 MW gas based combined cycle power project at Samalkot in Andhra Pradesh. World-class equipment for the project have been procured from internationally reputed equipment suppliers and are ready with the company. Reliance Power is proposing to install the equipment procured for Samalkot project, including advanced class 9FA machines supplied by GE, in the proposed project at Bangladesh, under appropriate guarantees from GE and the other equipment suppliers. This will help set up the project on a fast-track basis.

Shares of the company gained Rs 0.75, or 1.68%, to trade at Rs 45.50. The total volume of shares traded was 112,877 at the BSE (9.18 a.m., Monday).